MGold Resources Inc.

February 25, 2011 19:45 ET

MGold Completes Private Placement Offering

MONTREAL, QUEBEC--(Marketwire - Feb. 25, 2011) - MGold Resources Inc. (TSX VENTURE:MNI) ("MGold" or the "Company") is pleased to announce the completion of a non-brokered private placement previously announced of 4,500,909 units (the "Units") at a purchase price of $0.11 per Unit for total gross proceeds of $495,100 (the "Offering").

Each Unit consists of one (1) common share and one (1) common share purchase warrant (the "Warrants"). Each Warrant entitles its holder thereof to purchase one additional common share in the capital of MGold for a period expiring on December 21, 2012, at an exercise price of $0.17 per common share.

All securities issued in the course of the Offering will be subject to a four month and one day hold period. Two directors and officers of MGold have participated in the Offering, subscribing for a total of 410,000 Units.

Net proceeds of the Units will be used for general working capital purposes.

MGold is engaged in mineral exploration for precious and base metals. The Company holds the Burchell Lake property in the Shebandowan area of Northwestern Ontario.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • In Canada: MGold Resources Inc.
    Joel Scodnick
    President and Chief Executive Officer
    (705) 522.4439
    (705) 522.8694 (FAX)
    MGold Resources Inc.
    Douglas G. Reeson
    Chief Financial Officer and Director
    (416) 533.0323
    (416) 533.2890 (FAX)
    In Europe: MGold Resources Inc.
    W. Ian L. Forrest
    Chairman and Director (FAX)